After the price increases of agricultural products, there was a sharp decline
Following a period of disruption when agricultural prices rose sharply in 2021 and the first three quarters of 2022, the pace of growth subsequently slowed and prices subsequently began to fall. Recent declines in agricultural production and input costs are trending toward calmer pre-disruption levels.
Price changes for many agricultural products in the first quarter of 2024 were varied and contrasting. A particularly sharp decline was observed in the case of average grain prices, which fell by 28%. Prices of milk dropped by 12 percent, eggs and industrial plants (oil oils, protein crops, raw tobacco, sugar beets and others) by 10 percent, and fresh vegetables by 6 percent. (including a particularly sharp drop in tomato prices by 33%).
However, the average price of potatoes increased by 22% and fresh fruit by 20%. (despite a sharp 44% drop in lemon and lime prices), partly in response to the expected impact of unfavorable weather conditions on harvested quantities.
Among non-investment related inputs, the strongest rate of price decline was recorded in the case of fertilizers and soil improvers (-31%), animal feed (-16%), and energy and lubricants (-12%).
Quarterly price declines occurred in most EU countries
Most EU countries (21 out of 25 with available data) recorded a decline in agricultural production prices in the first quarter of 2024 compared to the same quarter of 2023. The strongest price declines occurred in Hungary (- 24%), Bulgaria and Romania (after -18 percent) and Slovakia and the Czech Republic (-17 percent each).
In turn, prices increased in 5 southern EU countries. The highest increases were recorded in Greece (+20%), and more modest increases were recorded in Malta and Spain (+4%), as well as in Portugal and Cyprus (+1%).
In terms of non-investment inputs (such as energy, fertilizers and feed), 24 of the 25 EU countries for which data are available recorded declines in the first quarter of 2024 compared to the first quarter of 2023. The sharpest rate of decline was recorded in Croatia (-20%), Hungary (-19%) and the Netherlands and Ireland (-17% each). Portugal was the only EU country to record growth (+2%).
